Today's Cryptocurrency News (February 2) | Bitcoin drops below $80,000; Crypto funds outflow of $1.7 billion last week

This article summarizes cryptocurrency news as of February 2, 2026, focusing on the latest updates on Bitcoin, Ethereum upgrades, Dogecoin trends, real-time crypto prices, and price forecasts. Major Web3 events today include:

1. XRP Faces “Epstein Conspiracy” Again? Ripple Former CTO Responds: Lack of Substantial Evidence for Alleged Connection

Rumors about Jeffrey Epstein and alleged “hidden connections” to early crypto projects have resurfaced on social media, bringing Ripple, XRP, and Stellar into the spotlight. In response, Ripple’s CTO David Schwartz publicly stated that the current accusations lack any substantial evidence, and the narrative of “behind-the-scenes manipulation” is mostly due to misinterpretation and emotional reading.

The incident was triggered by an old email sent in 2014 by Austin Hill, co-founder of Blockstream, which was recently rediscovered. The email mentioned Epstein and referenced Ripple and Stellar, founded by Jed McCaleb, as being “detrimental to the ecosystem.” Some netizens inferred that Epstein may have influenced the development of XRP or Stellar behind the scenes, sparking new controversy.

Schwartz said that if some people see this as “just the tip of the iceberg,” the real concern isn’t the content itself but the underlying antagonistic mindset. He pointed out that treating internal crypto projects as enemies only deepens divisions and causes long-term harm to the entire digital asset space.

In another clarification, Schwartz emphasized he has never seen any evidence linking Epstein directly to Ripple, XRP, or Stellar, nor has any project member collaborated with Epstein or his close circle. Even if Epstein had interacted with some Bitcoin-related individuals, such associations are common among ultra-rich social networks and do not prove involvement in specific on-chain projects.

Timeline analysis suggests that the focus might be more on Stellar rather than XRP. Ripple and XRP launched in 2012, McCaleb left Ripple in 2013, and Stellar was founded in 2014. Based on this context, the document mentioning “secret Bitcoin projects” is more aligned with Stellar’s development stage than XRP.

Overall, this controversy reflects more the market’s sensitivity to XRP’s background rather than verified facts. For investors concerned with Ripple, XRP disputes, Epstein crypto rumors, and Stellar’s early history, rational verification of sources remains key to discerning truth from falsehood.

2. Nomura Cuts Crypto Exposure! After Q3 Loss, Emergency “Brake” Applied, Bitcoin Crash Triggers Institutional Chain Reaction

Japan’s largest wealth management firm Nomura Holdings has begun to tighten its risk exposure in its European crypto subsidiary following a decline in Q3 profits, indicating that traditional financial institutions are reassessing their digital asset strategies amid market volatility. This adjustment occurred as Bitcoin dropped below $80,000 over the weekend, with several crypto-heavy companies reporting billions in paper losses.

According to foreign media, Nomura’s stock price plummeted 6.7% on Monday, the largest single-day drop in nine months. The company’s net profit for the quarter ending December 31 decreased 9.7% year-over-year to 91.6 billion yen. Bloomberg Intelligence analyst Hideyasu Ban believes the market’s reaction is more driven by short-term sentiment, combined with overall Asian market weakness and pressure on the crypto sector.

At the earnings call, CFO Nobuyuki Morne confirmed that the firm is reducing risk exposure in its Swiss digital asset subsidiary Laser Digital Holdings. The division turned from profit to loss this quarter, prompting management to tighten position controls. Nonetheless, he emphasized that Nomura’s long-term commitment to blockchain and digital assets remains unchanged.

Nomura’s international pre-tax profit has been positive for ten consecutive quarters but suffered significant year-over-year declines due to European losses. Meanwhile, wealth and asset management divisions performed steadily, reaching record high management scale and recurring income. The company also announced a buyback plan of up to 60 billion yen to boost market confidence.

Nomura’s situation is not unique. Several institutions disclosed large unrealized losses, reflecting the pressure from a deep crypto market correction. Despite short-term volatility, Laser Digital continues to apply for a national bank trust license in the U.S., indicating it has not abandoned its long-term plans. In the context of ongoing integration of traditional finance and digital assets, Nomura’s tightening strategy is seen as a phased defense rather than a full retreat.

3. QCP: Bitcoin’s Future Trend Depends Crucially on Holding the $74,000 Support Level

Singapore-based crypto investment firm QCP Capital pointed out that after Kevin Warsh was officially confirmed as the next Federal Reserve Chair, Bitcoin fell below the $80,000 support on Saturday, reaching a low of $74,500, while Ethereum also dropped below $2,170. A new round of deleveraging occurred, with over $2.5 billion in long leverage positions liquidated, compounded by continued ETF outflows, further dampening market sentiment.

Risk aversion persisted after Warsh’s appointment, affecting equities and extending to traditional safe-haven assets. Gold and silver prices continued to decline as investors reassessed Warsh’s policy path, with expectations of normalization or tightening rising, reducing demand for interest-free precious metals. Futures exchanges increased margin requirements, accelerating leverage position liquidations. Bitcoin currently holds support above $74,500, a level coinciding with the technical lows of the 2025 cycle.

Options market signals remain cautious, with a clear skew toward puts, but compared to the extreme levels during Bitcoin’s drop from $107,000 to $80,500 in November last year, hedging demand has eased, possibly reflecting investors positioning for short-term bottoming. However, market momentum remains weak, with upside limited by recent resistance levels. The key to future movement is whether the $74,000 support can hold.

If broken, deeper corrections may occur; if reclaimed above $80,000, volatility and option skewness could normalize. Market focus is on whether institutions will reaccumulate near the $76,000 average cost, as well as geopolitical risks and Fed policy signals.

4. CoinShares: Last Week’s Outflows of $1.7 Billion from Digital Asset Funds, Bitcoin and Ethereum Suffer Concentrated Selling

CoinShares released the 271st edition of its Weekly Digital Asset Fund Flows report, showing that global digital asset investment products experienced a second consecutive week of massive outflows, with a weekly outflow of up to $1.7 billion. Year-to-date net outflows have expanded to $1 billion, indicating a clear decline in investor risk appetite. As a result, the industry’s total assets under management have shrunk by approximately $73 billion since the October 2025 peak.

Regionally, the US was the main source of selling, with weekly outflows of $1.65 billion. Canada and Sweden also saw net outflows, of $37.3 million and $18.9 million respectively. Switzerland and Germany recorded small net inflows but on a limited scale, insufficient to offset the overall downward trend.

At the asset level, major cryptocurrencies were under the most pressure. Bitcoin-related products saw outflows of $1.32 billion, Ethereum outflows of $308 million. Previously hot assets like XRP and Solana also suffered, with outflows of $43.7 million and $31.7 million respectively, indicating rapid capital withdrawal from high-volatility assets.

Notably, some defensive products attracted inflows against the trend. Short Bitcoin funds saw weekly inflows of $14.5 million, with assets under management growing 8.1% year-to-date, reflecting some institutions hedging against price uncertainty. Additionally, popular tokenized precious metals products received inflows of $15.5 million, showing some funds shifting toward “on-chain safe havens.”

CoinShares pointed out that the worsening sentiment is due to multiple factors, including the Fed’s hawkish stance, large whale deleveraging related to four-year cycles, and rising geopolitical uncertainties. Continuous outflows suggest that institutions remain cautious about the short-term outlook, and markets may continue to face volatility and structural adjustments.

5. Regulated Banks in Singapore Enter the Stablecoin Arena: SGB Connects Fiat and USDT, USDC Interoperability

Singapore’s Gulf Bank (SGB) announced the launch of a new regulated fiat-stablecoin interoperability service, allowing institutional clients to mint, exchange, hold, and trade stablecoins within a single compliant platform. The service will be deployed on its proprietary clearing network SGB Net, supporting mainstream stablecoins like USDT and USDC across multiple blockchains, with direct integration into fiat settlement systems.

SGB stated that current stablecoin management processes remain complex, with high friction costs in compliance, custody, and clearing. CEO Shawn Chan said the bank aims to provide a unified infrastructure for traditional finance and digital assets, enabling seamless movement of funds on and off the chain.

SGB Net, launched earlier this year, is a real-time multi-currency clearing network primarily serving digital asset-related enterprises, with monthly fiat processing exceeding $2 billion. The new service will operate on this network and include comprehensive KYC, KYB, and anti-money laundering modules to meet cross-border payment and institutional risk management needs.

For security, SGB has partnered with crypto infrastructure provider Fireblocks, which supplies custody and security technology. The strategic partnership was established last November to reduce operational risks and improve settlement efficiency through automation. SGB is currently working with ecosystem partners and regulators to finalize compliance frameworks, aiming for official launch in Q1 2026.

From an industry perspective, demand for regulated stablecoins, especially USD-pegged ones, is rising, becoming vital tools for global digital settlements and cross-border liquidity. Recently, Tether launched a compliant US dollar stablecoin US₮; in the UAE, USDU has received central bank approval. These developments indicate accelerated integration of traditional finance and blockchain, with SGB’s initiative poised to become a key regional infrastructure node.

6. Caixin: JD Has Not Withdrawn Its Stablecoin License Application

Caixin reports, citing sources, that JD.com’s JD Coin Chain Technology (Hong Kong), previously believed to have exited the race for Hong Kong’s first stablecoin license, has not withdrawn its application. JD Coin Chain (Hong Kong) remains one of the three main entities testing stablecoins in the sandbox.

7. Bitcoin ETF Capital Flows Out! Average Cost Basis at $87,800, Investors Fully Underwater

U.S. spot Bitcoin ETFs are under unprecedented capital pressure. Galaxy Research Director Alex Thorn noted that last month, ETFs experienced the second and third largest weekly outflows in history, causing Bitcoin’s price to fall below the average cost basis of institutional holdings.

Data shows that the total assets managed by U.S. spot Bitcoin ETFs are about $113 billion, holding approximately 1.28 million BTC, with an estimated average entry price of $87,830, significantly above the current market price of $74,000–$76,000. This indicates that ETF investors are already in a loss position on paper.

Bitcoin declined about 11% over the weekend, from near $84,000 to $74,600, hitting a nine-month low. Thorn said this level confirms that “ETF buyers are overall underwater.”

From a capital perspective, selling pressure persists. Coinglass data shows that over the past two weeks, 11 U.S. spot Bitcoin ETFs have net outflows of about $2.8 billion, with $1.49 billion in the last week and $1.32 billion in the previous week, a stark contrast to the continuous inflows at the end of last year.

Nevertheless, the total ETF net outflow is only about 12% from its peak, while Bitcoin’s price has fallen nearly 40%. This suggests some long-term holders are still on the sidelines rather than exiting en masse. However, LVRG Research head Nick Ruck warned that if demand remains weak, the market could enter a longer downturn.

On the institutional front, some are still planning ahead. ProCap CIO Jeff Park believes Morgan Stanley’s upcoming Bitcoin ETF is more of a strategic move to strengthen its influence in digital assets rather than a short-term scale expansion.

The next key indicator will be whether ETF capital flows can stabilize Bitcoin’s price.

8. Peter Brandt Lowers Bitcoin Target Price to $54,000, Market May Face Deeper Correction?

Bitcoin continued its decline, briefly dropping to $74,500 today, reaching a new low since April 2025. Amid macro uncertainties, geopolitical tensions, and tightening liquidity, market sentiment has weakened significantly. Veteran trader Peter Brandt recently lowered his Bitcoin price target from $58,000 to about $54,000, drawing market attention.

In a daily chart shared on social media, Brandt noted that if Bitcoin loses the critical support zone formed last year, it could first retest $66,500. If that level breaks again, the next key technical support is around $54,000–$55,000. This indicates that Bitcoin still has considerable downside potential compared to recent highs.

He also mentioned the risk to MicroStrategy’s shareholders, implying that if Bitcoin continues to weaken, the financial health and valuation of related companies will be under pressure. Besides Bitcoin, Brandt warned that the overall crypto market cap has fallen to about $2.55 trillion, and if selling persists, it could slide further toward $2.41 trillion.

On the chart, Bitcoin’s 24-hour decline exceeds 5%, with volume also decreasing, indicating cautious capital behavior. Derivatives data shows open interest continues to decline, with leveraged longs being passively reduced. Meanwhile, gold, silver, and U.S. tech indices also experienced notable corrections, reflecting a global risk-off environment.

On macro front, U.S. government shutdown risks, divergent monetary policy outlooks, and rising risk aversion all exert external pressure on Bitcoin. Many analysts believe the short-term trend depends on liquidity shifts and market confidence recovery. If key supports fail, Bitcoin could enter a deeper correction, and investors should closely monitor macro and on-chain data.

9. U.S. Government Shutdown Triggers Liquidity Crisis? Raoul Pal Warns Crypto Selloff May Not Be Over

As Bitcoin and major crypto assets continue to decline, market concerns grow whether this downtrend is still in its early stage. Raoul Pal, founder of Global Macro Investor, recently pointed out that the current crypto sell-off is not caused by the industry itself but by liquidity tightening due to the U.S. government shutdown impacting global risk assets.

Raoul Pal stated on X that the recent two government shutdowns, combined with the exhaustion of reverse repo funds in the financial system in 2024, have created a significant dollar liquidity gap, suppressing the crypto market which was in an upward cycle. He believes this macro headwind is likely to ease this week as the funding agreement is reached, removing the key obstacle to liquidity.

He also countered the view that the decline is due to Trump’s nominee for Fed Chair, Kevin Warsh. Some suggest Warsh is hawkish or delays rate cuts, but Raoul Pal sees no basis for this and emphasizes Warsh will still implement easing policies, creating conditions for Trump and Scott Bessent to inject liquidity into the banking system.

On the capital side, Bitcoin ETFs have been under pressure recently. Over the past two weeks, related products saw net outflows of about $2.8 billion, with total assets dropping about 31% since October highs. Bitcoin’s price briefly fell near $76,000, below the average cost basis of U.S. spot Bitcoin ETFs, amplifying market volatility due to institutional de-risking.

Despite short-term pressures, Raoul Pal remains optimistic about 2026. He views the current decline as a phase of liquidity contraction rather than a trend reversal. If U.S. fiscal and monetary conditions gradually improve, the crypto market could regain funding support, and risk sentiment may recover.

10. USDT Market Cap Share Surges to Two-Year High, Crypto Market May Still Not Have Bottomed

The cryptocurrency market has weakened for four consecutive months, with total market cap falling to about $2.5 trillion. As prices remain under pressure, investors are increasingly using the Tether market cap ratio (USDT.D) indicator to assess whether the market is near bottom. Current data shows market sentiment remains defensive, with short-term recovery signals unclear.

USDT.D measures Tether’s share of the total crypto market cap. Historically, rising USDT.D indicates funds shifting from Bitcoin and altcoins into stablecoins, reflecting reduced risk appetite. TradingView data shows that on February 2, 2026, USDT.D rose to 7.4%, a two-year high, breaking above the key resistance of 6.5%. Meanwhile, total crypto market cap broke below important support levels, a bearish signal.

Crypto analyst Crypto Tony pointed out that while USDT dominance is rising, Bitcoin remains in a downtrend, far from its historical peak levels, suggesting the market may not have bottomed yet. Trader Tim believes that if USDT.D retests 6.5% and continues higher, the target could be 9.5%. Looking back at 2022, this level appeared around the final bottom, implying the current environment may still face further correction.

On-chain liquidity also weakened. CryptoQuant data shows that the average inflow of stablecoins onto exchanges over the past 30 days has significantly declined. Last October, monthly inflows averaged about $9.7 billion, but then rapidly decreased and continued to decline into early 2026. Capital outflows indicate investors are not only shifting into stablecoins but also withdrawing from the market, awaiting clearer signals.

Analyst Darkfost said that the flow cycle between stablecoins and Bitcoin has weakened markedly, and long-term liquidity shortages are suppressing prices. Only when USDT.D declines, stablecoins re-enter, and demand for Bitcoin recovers will there be more reliable reversal signals. Currently, it’s more a test of patience and risk management.

11. Bitcoin’s Sharp Correction Hits Strategy Hard! Unrealized Losses on Strategy Approach $1 Billion

Bitcoin (BTC) briefly dipped below $75,000, putting pressure on the world’s largest corporate Bitcoin holder, Strategy (formerly MicroStrategy). The price fell to $74,544, with unrealized losses on its BTC holdings approaching $1 billion, highlighting that even large institutions cannot avoid crypto market risks during high volatility cycles.

In the past week, Bitcoin declined over 12%. This correction marks the first time since April 2025 that BTC has fallen below $75,000. Data shows Bitcoin is still oscillating below this level, and the company’s Bitcoin treasury value has shrunk accordingly.

Strategy, led by Michael Saylor, currently holds 712,647 BTC, with an average cost basis of about $76,037. Based on the recent low, its paper loss approached $1 billion, but as prices rebounded, unrealized losses narrowed to about $150 million. Nonetheless, this volatility has put significant pressure on the company’s balance sheet.

Other corporate holdings are also affected. Public data indicates that Metaplanet’s Bitcoin holdings have fallen over 30%, Strive’s unrealized losses are nearly 29%, and GD Culture Group’s paper losses exceed 35%. The declining Bitcoin price is simultaneously compressing corporate asset values.

Despite short-term pressure, Saylor reaffirmed his long-term strategy, recently signaling increased accumulation and raising the dividend rate on preferred shares to 11.25% to fund further purchases. The company has made multiple buys this year, including a single purchase of 22,305 BTC on January 20.

Technically, analyst PlanB noted that the 200-week moving average of Bitcoin is around $58,000, and on-chain data shows prices near $55,000. RSI has fallen below 50, indicating weakening momentum. Historically, Bitcoin has often retraced to these levels, and if the downtrend continues, further testing of this support zone is possible.

Currently, Bitcoin has broken through several key cost zones, testing the confidence of institutional holders. If prices fall further, the corporate Bitcoin holding model will face renewed scrutiny.

12. Bitcoin’s “Life-and-Death Test” This Week: MSTR Earnings + Five Major US Data Releases, Trend May Be Set

Bitcoin’s first full trading week of February has been under pressure, with prices oscillating below $80,000. Macroeconomic uncertainties and risk aversion have intensified, with market focus on key U.S. economic data and MicroStrategy’s earnings, which could determine Bitcoin’s near-term direction.

First, U.S. labor market signals are critical. JOLTS job openings, ADP employment, initial unemployment claims, and Friday’s non-farm payroll report will collectively influence whether the Fed shifts toward easing in 2026. Weak data would reinforce rate cut expectations, boosting liquidity prospects and generally supporting Bitcoin; strong data could delay policy pivot and keep risk assets under pressure.

Currently, Bitcoin hovers around $75,000, with ETF capital flows cautious and sentiment defensive. Historically, weaker employment data often triggers a short-term rebound in Bitcoin; strong data may lead to further declines.

Additionally, corporate catalysts are crucial. MicroStrategy will report Q4 2025 earnings after market close on February 5. The company holds about 712,647 BTC, representing roughly 3.4% of circulating supply, and its financial performance is highly correlated with Bitcoin’s price. Market expectations include significant fair value impairments; if management adopts a cautious stance on capital structure, leverage, or continues to buy more BTC, it could heighten market concerns. Conversely, reaffirming long-term conviction or signaling ongoing accumulation could boost confidence.

Amid macro, flow, and corporate factors, this week may be a key turning point for Bitcoin. Investors await these “hard data” signals for guidance.

13. Trump’s Nomination of Kevin Warsh as Fed Chair Sparks Turmoil! Gold and Silver Crash, Bitcoin Falls Below $80,000

U.S. President Donald Trump’s nomination of Kevin Warsh as Federal Reserve Chair has triggered intense market volatility. As Warsh is widely regarded as independent and experienced in crisis management, the appointment is seen as a “stability signal,” causing the dollar to strengthen but risk assets to sell off sharply.

Warsh, a former Fed governor from 2006 to 2011, experienced the 2008 financial crisis. Treasury Partners CIO Richard Saperstein said the nomination aligns with market expectations, and his reputation in the financial system helps maintain policy credibility.

Following the announcement, commodities plummeted. Spot gold dropped nearly 9% in one day, spot silver fell 31.4%, the largest decline since 1980. During Asian hours on Monday, precious metals continued under pressure, with gold down about 8% and silver over 10%. The failure of safe-haven assets caused market sentiment to shift sharply toward defense.

Cryptocurrencies also declined. Bitcoin fell to about $75,103, the first time since April 2025 it dropped below $80,000. Tech stocks weakened, dragging major U.S. indices lower.

Asia-Pacific markets also suffered. Korea’s KOSPI plunged over 5%, temporarily halting trading; Hong Kong’s Hang Seng declined nearly 3%; Japan’s Nikkei 225 fell about 1%. Oil markets also declined, with Brent and WTI dropping over 5%, partly due to Trump’s comments that Iran is engaging in “serious talks” with the U.S., easing supply concerns.

Looking ahead, markets will focus on tech giants’ earnings. Alphabet and Amazon are set to report soon, with investors hoping fundamentals can provide new direction amid volatility.

This event underscores the powerful influence of policy expectations on global asset prices. Fed personnel changes, dollar strength, and safe-haven asset failures together create heightened uncertainty for early 2026 markets.

14. Vitalik Restructures On-Chain Governance Logic: Prediction Markets + Anti-Capture Preference Layers, DAO May Enter a New Paradigm

Ethereum co-founder Vitalik posted on Farcaster that the future of on-chain mechanism design is not complicated, following a “two-layer” model: one layer is an open execution mechanism similar to prediction markets, and the other is a preference-setting tool that is resistant to capture and non-financialized. He believes this is the key path to solving the current DAO governance problem of being controlled by capital.

Vitalik explained that the first layer should be a market system maximizing accountability, where anyone can participate in buying and selling, bearing economic responsibility through “correct judgment profit, wrong judgment loss.” This mechanism, in a permissionless environment, naturally possesses auditability and accountability, making it suitable as a “decentralized execution body.”

The second layer is for expressing the community’s true values. Vitalik emphasized that this layer should not rely on token voting, as tokens lack diversity and can be acquired by anyone to gain control. Preference expression must be decentralized, anonymous, and use anti-collusion schemes like MACI to reduce manipulation and collusion risks, thereby motivating intrinsic rather than profit-driven behavior.

He also noted that in some scenarios, centralized execution teams can be used to improve efficiency, but these executors must also be constrained and evaluated by the non-financial preference layer to ensure their actions align with collective values rather than minority interests.

Vitalik concluded with a clear design principle: any on-chain system should be broken down into two questions—who executes and how; how preferences are expressed and how executors are judged. As concepts like “decentralized governance,” “prediction market decision systems,” and “MACI anonymous voting” mature, this approach could push Web3 governance into a new phase.

15. Trump’s Crypto Company WLFI Faces Storm Again: Warren Calls for Investigation into $500 Million Secret UAE Investment

U.S. Senator Elizabeth Warren publicly called for Congress to investigate a major transaction involving entities with UAE royal backgrounds and Trump family’s crypto company World Liberty Financial (WLFI). She considers the investment to have obvious corruption suspicions and demands immediate intervention.

According to The Wall Street Journal, an entity related to UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan invested about $500 million to acquire 49% of WLFI. The deal occurred days before Trump’s inauguration, signed by Eric Trump, generating approximately $187 million in income for the Trump family, with an additional $31 million linked to his ally Steve Witkoff.

Controversy intensified as, shortly after the deal, the U.S. approved the sale of advanced Nvidia AI chips to the UAE. Several lawmakers believe the timing suggests a quid pro quo. Warren stated, “This is outright corruption. The government must revoke the chip sale decision and explain to Congress whether national security was sacrificed for the president’s crypto company.”

The White House denied any misconduct, asserting all presidential decisions prioritize U.S. citizens’ interests and emphasizing that WLFI’s transaction posed no conflict of interest.

This is not the first time Trump’s crypto-related activities have faced scrutiny. Warren previously opposed WLFI’s application for trust charter bank status and called on the OCC to halt review. Additionally, Trump-themed meme coins plummeted after issuance, causing losses for investors, with insiders allegedly cashing out over $800 million.

Currently, Trump’s group still controls about 80% of the token, with a three-year lock-up period. Lawmakers worry that once the lock expires, it could trigger another market shock and intensify discussions around “Trump crypto scandal,” “WLFI UAE investment probe,” and “U.S. crypto regulation political risks.”